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March 26, 2009
TIMES SEEKING $4.5 MILLION SAVINGS FROM GUILD WORKERS
Times management today asked the Guild to consider taking part in “some version” of the salary reduction program that was announced this morning for all nonunion workers at The Times Company. The company is forcing all exempt employees to take a 5 percent pay cut starting April 1st. In exchange, exempts are being given an additional 10 “personal” days to be taken by the end of this year.
At a meeting between Times representatives and Guild officials this afternoon, Terry Hayes, Vice President of Labor Relations, claimed that the savings to The Times if the Guild agreed to the same pay cut would be approximately $4.5 million. He stated that this was an important piece of an overall cost reduction plan designed to help The Times survive the current dramatic falloff in advertising revenue.
The Guild was represented at the meeting by Local President Bill O’Meara, Secretary-Treasurer Peter Szekely, Local Representative Anthony Napoli, and Grievance Chairperson Grant Glickson. Unit Chair Art Mulford was unavoidably unable to attend, but has been fully briefed on all developments.
In response to questions from O’Meara, management clarified the following:
· The additional personal days would be paid days, not an unpaid furlough as the company’s releases seemed to indicate. They would be scheduled by agreement of the employee and his or her manager. Employees will not be replaced on those days. · If the Guild agreed to the salary reduction, it would take effect after the negotiated 2 percent contractual increase goes into effect as scheduled on March 31. · If the Guild does not go along, Hayes says there will be layoffs across all Guild departments, including New York Times Digital, to achieve the $4.5 million savings target management is seeking. · The company would not guarantee that there will be no layoffs if the Guild were to agree to go along.
O’Meara told management “the Guild is very much interested in ensuring the survival of The New York Times.” But he pointed out that our members have already saved the company $4.5 million a year through the union’s restructuring of the Guild-Times Benefits Fund, and the related diversion of wages approved by members late in 2008.
TIMES REJECTED EARLIER GUILD SAVINGS PROPOSAL
In late 2007 the Guild offered the company an alternative regarding our pension plan that would have saved the company an estimated $30-$40 million per year. Details of that offer can be found in the shop paper we published at the time by clicking here. As you may recall, company management inexplicably turned us down, and now is facing a huge increase in the amount it is required to put into the Guild-Times pension plan, as it admitted in its recent 10K filing with the government.
Nevertheless, while not committing to anything, the Guild said it would consider the company’s proposal and let management know whether we would be willing to enter into discussions, including talks over possible alternative methods of saving money. Hayes said the company was willing to discuss anything the Guild might propose.
The Guild Unit Council will meet next week to discuss our options. If we decide to respond to the company’s proposal, it is also likely that we will survey our members and solicit their input prior to beginning serious discussions. All of this will likely take place on a fairly expedited basis, if the Guild decides to proceed.
“To be clear, what the company is asking would require a modification of our contract,” said O’Meara. ”That means our members will have to vote on whatever agreement, if any, is reached regarding this matter, and we will be guided by their preferences and their vote.
LAYOFF UPDATE
As we reported earlier, The Times conducted a layoff today in a few departments where Guild-represented employees work. Fewer than 15 Guild-represented employees were among the total of about 100 workers let go.
In some cases, managers have decided to lay off certain individuals out of seniority order, rather than offer buyouts. The contract permits that, but only if they follow the correct procedures. And if they do, they must increase that worker’s severance pay by 50 percent, almost the same value as a buyout. The Guild is closely monitoring the situation to ensure that management follows the terms of the contract and we stand ready to challenge any company decision that violates the correct procedures. We intend to require the company to justify the decisions they made regarding these layoffs.
The Guild met with many of the affected employees this afternoon to explain their rights and offer whatever assistance we could. Any affected employee whose has not contact the Guild, is urged to do so as soon as possible.
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